Since its explosive growth in 2020, decentralized finance (or DeFi) has been gaining a lot of attention and popularity, often seen in mainstream media headlines. With exponential growth, DeFi recorded a total value locked (TVL) of $41.29 billion, with almost 90% coming from lending and DEX products. (via DeFiPulse)
Lending and trading are the two main business lines in the current DeFi space with the highest TVL volume. However, they are practically isolated from each other, which leads to extremely low capital efficiency. Few lending protocols support sports or even margin trading, and most DEXs do not provide loans. Also, even though users receive transferable and tradable CDs after depositing into credit protocols, there are several platforms that actually make it easier to use them financially.
As such, Lever is designed to bridge the gap between lending and DEX protocols, improving capital efficiency in DeFi.
Welcome to LEVER
Leverage is essentially an open source margin trading platform where you can lend, borrow and trade with leverage to either buy long/short an asset, but only in one place.
To lenders/borrowers, you can lend your unused cryptoassets (including CDs from other lending protocols) to earn interest, or use them as collateral for loans.
And for traders, after making a margin deposit in the margin pool, you will be able to go long or short on the supported asset in Lever with up to 3X leverage. The platform uses external AMMs such as Uniswap to provide excess liquidity to margin traders to open positions of any size.
Using leverage, you can conveniently use your available capital for greater profits.
Why a Lever?
The key features of the Lever are explained as follows:
Efficient Use of Assets: On Lever users can lend their unused crypto assets to others and earn higher interest rates.
Fast and convenient trading: Borrowing and trading are fully integrated into Lever. Traders can easily go long or short in just one step. In a future version of leverage, market order, limit order and stop order will also be supported.
Huge liquidity: By relying on AMMs such as Uniswap, Sushiswap, Pancakeswap and 1inch, Lever can provide high liquidity for your trading. It is also able to effectively reduce slippage when opening or closing large positions.
Many more tokens can be shorted: in addition to WBTC and ETH, more DEFI and ERC20 assets such as SNX, UNI and AAVE can be shorted. Lever also offers a visualized operating interface for position control.
Additional collateral options for loans: In addition to the usual native tokens such as ETH, DAI and USDC, Lever allows users to borrow using certificates of deposit from other lending protocols such as Aave’s aTokens and Compound’s cTokens.
As mentioned above, according to our observations, the problems in DeFi are mainly in the following aspects:
Gaps between lending products and DEXs. Borrowing and asset trading activities often take place in two different locations. Users will have to first go through the stressful process of getting loans from lending platforms and then trading on their preferred exchanges.
Inefficient use of user-hosted assets. Typically, users receive tokenized certificates of deposit after making deposits in lending protocols such as aTokens from AAVE and cTokens from Compound. These tokens represent the value of their underlying assets, but can rarely be reused for investment or trading.
Rare DeFi products enable margin trading. Margin trading can effectively increase traders’ profits. It is popular in the traditional financial market and is also in huge demand in the DeFi space. Although there are several protocols offering this service, their liquidity is not enough.
Solution and Features
Fast and convenient trading-Borrowing and trading are fully integrated into Lever. Traders can easily borrow and trade assets in one place. Lever also offers a visualized operating interface for position control.
High Capital Efficiency– In addition to their own tokens, lenders can deposit AAVE aToken and cToken Compound tokens to earn additional interest in Lever. This makes it possible to double the interest as lenders can first deposit their assets into AAVE/Compound and then use the resulting aTokens/cTokens to re-deposit into Lever. Moreover, these tokens can also be used as collateral for loans.
Margin trading and huge liquidity. With Lever’s powerful margin pool, traders can easily open leveraged positions to go long or short on an asset. In addition to WBTC and ETH, many DEFI and ERC20 assets such as SNX, UNI and AAVE can now be short-leveraged. Additionally, by relying on AMMs such as Uniswap, Lever can provide ample liquidity and reduce slippage on positions of any size.
Benefits of margin trading
- Buy long or short certain assets with leverage.
Users mostly take out emergency loans using their assets or new investment opportunities.
For example, if you have held asset A for a long time and are bullish on asset B, in this case you can deposit your asset A in Lever as collateral and borrow a stablecoin such as USDT or DAI with or without leverage, depending on your preferences, and then swap it to asset B. As soon as both prices rise, your profit will increase.
- Get more passive income.
In addition to earning interest on your deposit, you can earn LEV tokens through the Lever liquidity mining program.
How to do margin trading?
Here is a guide to leveraged trading on margin:
- Deposit: First you need to deposit any supported asset to Lever. The platform supports various assets that can be used as collateral, which can start earning interest after a deposit is made.
- Profit: After making a deposit, simply go to Margin and click Sell (Short) / Buy (Buy) for the asset pair you want to trade.
- Position Opening: Set the required amount based on the available deposit to be used as collateral for the loan. Then select the leverage ratio, the system will automatically convert the maximum amount that can be used for this trade.
How and where to buy LEV token?
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